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NEW BRAUNFELS -- A pretrial settlement agreement negotiated by the Texas Attorney General’s Office will require a New Braunfels-based all-terrain vehicle sales retailer to surrender its sales license. In 2010, the State charged Olson Powersports and its owners with defrauding their customers by failing to deliver vehicles even after purchasers paid for them in advance.

Under a final judgment approved by the court, Brandon and Debra Olson -- owners of Olson Powersports -- are prohibited from selling ATVs in Texas for five years, required to provide refunds to their customers, and must pay $30,000 in civil penalties and attorneys’ fees to the State. Because the defendants financially mismanaged their ATV dealership, the Attorney General’s initial legal action asked the court to freeze the firm’s assets so that funds would be preserved for customers who never received the ATVs they purchased. Customer refunds will be prorated from the defendants’ previously frozen accounts.

Prior to the State’s enforcement action, the defendants sold ATVs through a number of entities associated with Olson Powersports -- including: The Family Exchange, Big Time Powersports, Big Time ATV and Star Power. An investigation by the Attorney General’s Office revealed that the defendants failed to deliver recreational vehicles after customers paid in-full for their purchases online. The defendants required up-front payment and, in exchange, guaranteed delivery of selected vehicles within five to seven days, often in time for children’s birthdays. However, the defendants either failed to actually ship the pre-paid ATVs or shipped them weeks or months after the agreed-upon dates.